Facebook Twitter YouTube

Having trouble viewing this email? Click here

Prepared by and Scott
Writing under the nom de plume of J.L. LORD

Friday | May 8, 2020

Hello Eizell.




In the MORNING COFFEE REPORT yesterday, all I wrote in the TODAY section was “Another attempt to hit 2900”.


This is exactly what we got – we hit 2901 and fell. The day started out with the market propelled higher because of rising oil prices. Despite oil falling from being higher by $2 to eventually trade down on the day, the market didn't stop trying to stick its nose above 2900.

When the SPX got to 2900, it sat there for a long time looking around, but didn't like what it saw, so it sold back off a little to close at SPX 2881.19. As usual, the high tech FAANG stocks did much of the heavy lifting for the market, taking the NASDAQ into positive territory for the year.


In the theme song for the movie GHOSTBUSTERS, there is a line that says:

“Who you gonna call? Ghostbusters!
I ain't afraid of no ghost.
I ain't afraid of no ghost.”

This market ain't afraid of no virus, or its subsequent unemployment. It views it as temporary – at least for now. Hell, even Elon Musk can snap and lose his mind publicly and his stock doesn't move.


TODAY: May 8


In the POT class (and a subsequent update) on Wednesday morning, I told students “many times we park just under a major number until news comes out to propel the market through it”. Today we go through 2900.

Yesterday and Wednesday, we played with 2900, but could not close above, selling off on the close to scare people out. Today, those same people will buy again. We may see SPX 3,000 in weeks despite all the bad news.

When the market was down 36%, people were calling me nuts, and that we will never be up on the year. One thing has nothing to do with the other. BTW...I do not suffer from insanity ...I enjoy it most of the time.

For the record... the NASDAQ is now higher for the year.

I am still standing by my prediction (made December 31, 2019) that we will be positive for the year and making new all-time highs by the end of the year. I maintained this stance even when the SPX was down -35% for the year.

S&P 500 Price Limits

From 8:30 a.m. to 2:25 p.m. CST, there are successive price limits corresponding to 7%, 13%, and 20% declines below the previous trading day’s reference price.

From 2:25 p.m. until the 3:00 p.m. CST close of the cash equity market, only the 20% price limit will be applicable.


Average year with lots of inter42mittent volatility
(-10.82% so far)

POT Logo

A separate update is coming.



Up and Running for POT students (so far).

Really quickly...

To help in your quest for the best possible options trading outcomes, we would like to know what level of options trading knowledge and skills you currently have. Please click the button below to indicate what level of trader you are? Please skip if you already responded. Thank you for participating.

P.O.T. Schedule to come.


Trading is a tough job on a stomach void of coffee and humor.
You provide the coffee and we will take care of the rest.



For education purposes ONLY. Please read the disclaimer below. We do not care if you agree or disagree with it—that is the rule. ​​​Stratagem Trading (Stratagem: “,” “Stratagem”), and any of its possible affiliates, respective independent contractors, employees, officers, or agents are not acting as licensed financial advisers, registered broker-dealers,tax advisers, etc. (although some individuals may or may not hold a license). Furthermore, they do not provide financial advice, make recommendations, or conduct business by transacting trades. Stratagem Trading adamantly states that nothing in this communication constitutes a solicitation, promotion, endorsement, offer or recommendation to buy or sell any investment, mutual fund, debt instrument, commodity, derivative product or security as described herein.

Stratagem does NOT offer auto-trades. Case studies being provided are historical examples illustrating how a particular commodity, equity, index and/or option strategy could have been implemented. Stratagem Trading is not providing students with real time trading opportunities, nor giving advice. We strongly recommend that you consult with a licensed financial professional for all your financial matters.

COPYRIGHT (c) Material 2019 | Stratagem Trading |


If you wish to no longer receive our newsletter, you can unsubscribe here.

Stratagem Trading 1000 W. 15th Street #243 Chicago, Illinois 60608 United States